Toyota agrees to billion-dollar settlement

NEW YORK, Dec. 26 (UPI) -- Japanese auto giant Toyota Motors has announced a settlement of $1.1 billion in a class-action lawsuit over sudden-acceleration problems in some of its cars.

The company agreed to set up two $250 million funds, CNN reported.

One would be used to compensate Toyota owners who sold their cars between Sept. 1, 2009, and Dec. 31, 2010, compensating them for the loss in resale value of Toyota cars. The other would go to Toyota owners with cars not eligible for brake-override systems.

The balance of the money would be used for a 10-year customer care plan.

Toyota's reputation for quality took a heavy hit with reports of unintended sudden acceleration. Problems have continued with more than 10 million vehicles around the world recalled this year.

The company still faces lawsuits over injuries and deaths from crashes blamed on sudden acceleration.